InterGroup Reports Q1 FY2026 Results; Real Estate Segment Income Up 20% YoY, Hotel KPIs Up, and $13.4 Million in Cash & Restricted Cash

Rhea-AI Summary

InterGroup (NASDAQ:INTG) reported results for the three months ended September 30, 2025. Consolidated GAAP net loss was ($1,159,000) and EBITDA (Non-GAAP) was $4,526,000 (-9.7% YoY). Real estate segment income rose to $3,157,000 (+20.1% YoY) on revenues of $5,495,000 (+8.0% YoY). Consolidated hotel KPIs: ADR $218 (+3.8% YoY), occupancy 95% (-1 ppt), and RevPAR $207 (+2.5% YoY).

Hotel segment: total hotel revenues $12,418,000 (+5.1% YoY) but OIBDA fell to $1,937,000 (-36.0% YoY) and hotel GAAP net loss widened to ($2,302,000) (-51.2% YoY). Cash, cash equivalents and restricted cash totaled $13.391M at Sept 30, 2025.

Positive

• Real estate segment income +20.1% YoY to $3,157,000
• Total cash and restricted cash of $13,391,000 at Sept 30, 2025
• ADR increased +3.8% YoY to $218, supporting RevPAR growth

Negative

• Hotel OIBDA declined -36.0% YoY to $1,937,000
• Net loss from hotel operations widened -51.2% YoY to ($2,302,000)
• Consolidated EBITDA decreased -9.7% YoY to $4,526,000

Insights

Real Estate & Hospitality Financial Analyst

Mixed quarter: real estate strong, hotels under strain; liquidity present but operating pressure and lower EBITDA warrant caution.

Consolidated metrics show a split business dynamic. The real estate segment delivered higher revenue and segment income, with revenues of $5,495,000 and segment income of $3,157,000, up 8.0% and 20.1% year‑over‑year respectively. Hotel top lines rose 5.1% to $12,418,000, with ADR up to $218 and RevPAR improving 2.5%, indicating some demand recovery.

Profitability and cash generation diverge across segments. Consolidated EBITDA fell 9.7% to $4,526,000, and hotel OIBDA dropped 36.0% to $1,937,000, while hotel GAAP loss widened to ($2,302,000). Operating expenses grew substantially, increasing hotel operating costs by 19.2%, which drove weaker hotel operating results despite revenue gains. The company reports $13,391,000 in cash and restricted cash, and management states the prior going‑concern doubt was alleviated as of June 30, 2025.

Risks and dependencies remain clear and short term. Continued recovery in the San Francisco hospitality market and control of hotel operating costs determine near‑term cash flow. Interest and related‑party interest remain meaningful, with mortgage interest of $2,493,000 and related‑party interest of $872,000 in the quarter. Watch quarterly OIBDA trends, hotel operating expense run‑rate, and cash/restricted cash balances over the next 12 months for evidence of sustained improvement.

Los Angeles, CA, Nov. 17, 2025 (GLOBE NEWSWIRE) -- The InterGroup Corporation (“InterGroup” or the “Company”) reported results for the three months ended September 30, 2025. Management continues to conclude that the prior going-concern doubt at majority-owned subsidiary Portsmouth Square, Inc. was alleviated as of June 30, 2025 following its hotel refinancing, and no substantial doubt exists for at least twelve months from the issuance date of the Company’s financial statements.

Fiscal Q1 2026 Highlights (vs. Q1 2025)

• GAAP net loss: ($1,159,000) consolidated; net loss attributable to InterGroup: ($535,000) [vs. ($398,000)].
• EBITDA (Non-GAAP): $4,526,000 vs. $5,013,000 (-9.7% YoY). See reconciliation below.
• Real estate segment income: $3,157,000 (vs. $2,629,000; +20.1% YoY). Revenues $5,495,000 (vs. $5,086,000; +8.0% YoY).
• Hotel KPIs (consolidated): ADR $218 (+3.8% YoY), occupancy 95% (-1 pt), RevPAR $207 (+2.5% YoY).
• Marketable securities: net gain of $136,000 (vs. $129,000).
• As presented in the Condensed Consolidated Statements of Cash Flows, cash, cash equivalents and restricted cash at September 30, 2025 totaled $13,391,000, consisting of cash and cash equivalents of $5,054,000 and restricted cash of $8,337,000.

Hotel Revenues & Expenses Detail (Segment)

Hotel revenues (by category):

• Rooms: $10,428,000 (vs. $10,110,000; +3.1% YoY)
• Food & beverage: $912,000 (vs. $733,000; +24.4% YoY)
• Garage: $900,000 (vs. $875,000; +2.9% YoY)
• Other operating departments: $178,000 (vs. $102,000; +74.5% YoY)
• Total hotel revenues: $12,418,000 (vs. $11,820,000; +5.1% YoY)

Hotel expenses (segment):

• Operating expenses excluding depreciation & amortization: $10,481,000 (vs. $8,792,000; +19.2% YoY)
• Operating income before interest, depreciation & amortization (Non-GAAP OIBDA): $1,937,000 (vs. $3,028,000; -36.0% YoY)
• Interest expense — mortgage: $2,493,000 (vs. $2,824,000; -11.7% YoY)
• Interest expense — related party: $872,000 (vs. $824,000; +5.8% YoY)
• Depreciation & amortization: $874,000 (vs. $903,000; -3.2% YoY)
• Net loss from Hotel operations (GAAP): ($2,302,000) (vs. ($1,523,000); -51.2% YoY)

Note: OIBDA is a Non-GAAP measure. GAAP income from operations can be derived as OIBDA minus depreciation & amortization. OIBDA is not a substitute for GAAP and is provided for period-over-period comparability.

Real Estate Operations (Q1 FY2026 vs. Q1 FY2025)

Real estate revenues were $5,495,000 (vs. $5,086,000; +8.0% YoY). Segment income from operations was $3,157,000 (vs. $2,629,000; +20.1% YoY).

Marketable Securities / Investing Transactions

The Company recorded a modest net gain of approximately $0.1 million in marketable securities for the quarter, consistent with an emphasis on liquidity and disciplined risk management.

CEO & COO Commentary

John V. Winfield, Chairman and Chief Executive Officer, said:

“We continue to observe signs of stabilization and recovery across the San Francisco hospitality market, including improving convention calendars, tourism indicators, and business travel activity. On the investment side, our marketable securities activity remained modest with a small net gain, consistent with our emphasis on liquidity and risk discipline.”

David C. Gonzalez, Chief Operating Officer, added:

“Operationally, Q1 reflected a degree of stabilization across the portfolio. In real estate, we remain focused on leasing, recoveries and expense control to support cash generation, and in hospitality we continue to optimize rate, channel mix and group/convention exposure as the San Francisco market stabilizes.”

GAAP to Non-GAAP Reconciliation (presented with GAAP prominence)

Reconciliation of Net Loss (GAAP) to EBITDA (Non-GAAP) — Three months ended September 30 (in dollars)

		2025			2024
Net loss (GAAP)	($	1,159,000	)	($	852,000	)
Add: Income tax expense		474,000			359,000
Add: Interest expense — mortgages		3,258,000			3,514,000
Add: Interest expense — trading/margin		297,000			324,000
Add: Depreciation & amortization		1,656,000			1,668,000
EBITDA (Non-GAAP)		4,526,000			5,013,000

Year-over-year change (EBITDA): -9.7%.

Non-GAAP Cautionary Statement: EBITDA is a non-GAAP financial measure defined by the Company as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization. Management uses EBITDA to evaluate operating performance and liquidity, to compare results period-over-period, and to benchmark against peers; however, it has limitations and should not be viewed as a substitute for GAAP. The most directly comparable GAAP measure is net income (loss), which is presented above with equal or greater prominence.

KPI definitions: ADR = average room rate paid; Occupancy = rooms sold ÷ rooms available; RevPAR = ADR × Occupancy.

Forward-Looking Statements

This press release contains forward-looking statements subject to risks and uncertainties, including hospitality market recovery in San Francisco, business travel trends, interest rate environment, securities market volatility, leasing dynamics, and macroeconomic factors. See “Forward-Looking Statements” and “Risk Factors” in the Company’s Form 10-Q for the quarter ended September 30, 2025 for additional information. The Company undertakes no obligation to update forward-looking statements except as required by law.

About The InterGroup Corporation

The InterGroup Corporation (NASDAQ: INTG) is a diversified holding company with interests in hospitality, real estate, and marketable securities. InterGroup’s primary hospitality asset is a majority interest in Portsmouth Square, Inc., which owns the Hilton San Francisco Financial District (558 rooms) and a five-level parking garage.

Investor Contact
The InterGroup Corporation
1516 S. Bundy Drive, Suite 200
Los Angeles, CA 90025
(310) 889-2500

FAQ

What were InterGroup (INTG) Q1 FY2026 GAAP and Non-GAAP results on Nov 17, 2025?

GAAP net loss was ($1,159,000) and EBITDA (Non-GAAP) was $4,526,000 for Q1 FY2026 (three months ended Sept 30, 2025).

How did InterGroup's real estate segment perform in Q1 FY2026 for INTG?

Real estate revenues were $5,495,000 and segment income rose 20.1% YoY to $3,157,000 in Q1 FY2026.

What hotel KPIs did InterGroup report for Q1 FY2026 and how did they change?

InterGroup reported ADR $218 (+3.8% YoY), occupancy 95% (down 1 point), and RevPAR $207 (+2.5% YoY).

How much cash did InterGroup (INTG) hold at September 30, 2025?

Cash, cash equivalents and restricted cash totaled $13,391,000 as of Sept 30, 2025.

Why did InterGroup's hotel operating results weaken in Q1 FY2026?

Hotel OIBDA fell 36.0% YoY to $1,937,000 and hotel GAAP net loss widened to ($2,302,000), driven by higher operating expenses and lower operating income.

Did InterGroup report any material gains from marketable securities in Q1 FY2026?

The company recorded a modest marketable securities net gain of about $136,000 for the quarter.